ICO Loans | All you need to know

It is true that there are many forms of financing for SMEs through different entities that offer the possibilities of carrying out a project, but one of the most requested options in Spain are ICO loans since they allow the financing of different investments of fixed assets .

In general, they do not differ much from traditional loans granted by banks, but they do have certain differences in the form of financing , so that it is necessary for companies and entrepreneurs to know the details of this modality when they need money to keep the business moving forward.

Everything to know about ICO loans

Entrepreneurs, freelancers, companies or any public or private organization that needs a line of financing that allows them to have better liquidity to invest, can opt for this type of credit, which is an initiative of the Official Credit Institute (ICO) to promote investments , betting on the development of new companies either by Spaniards or foreigners.

It is a type of request that is made provided that the requirements are met. Something that characterizes this type of credit from the traditional ones is that they offer fixed or variable preferential interest rates, with repayment terms and referential data that are updated on the platform of the institute's official website.

ICO Loans | Complete guide
ICO Loans | Complete guide

Conditions to request this type of credits

In the case of line of entrepreneurs and companies , a maximum of 12.5 million euros will be approved and which can be accessed in one or more applications. On the other hand, it is only allowed to finance assets under the concepts of:

  • Financing for the remodeling or restructuring of real estate.
  • Liquidity
  • Financing for the purchase of companies.
  • Financing of new or used fixed assets in the national territory.
  • Financing of vehicles that exceed 30,000 euros.

With this type of loan, you must take into account the current terms that are convened annually, and that are part of a public financing program, so it is recommended to make the request as soon as possible in one of the private credit institutions that It will be in charge of analyzing the operation to decide whether or not to grant the aid and, if positive, to determine the guarantees.

How do ICO financing lines work?

It is quite similar to the traditional credits approved by banking institutions. However, three actors participate in them: the applicant, the financial institution where the request for the line of credit is made and the Official Credit Institute. They are funds intended for freelancers, SMEs or any organization that meets the requirements that are needed to make an application for ICO loans.

Financial entities not only manage credit by making a financial analysis and the risks that this implies, they also assume the risks in cases where the applicant does not comply with the payment commitment that he has acquired.

On the other hand, the applicant must deliver to the bank all the necessary requirements and is responsible for complying with the obligation to cancel the financing as well as the corresponding interest within the period that has been determined.

ICO 2019 lines for every need

ICO loans have five lines of financing, with different characteristics , for entrepreneurs, freelancers and SMEs this 2019 and which are:

ICO line for companies and entrepreneurs

Especially for freelancers and public or private companies that require financing for productive investments and that need to cover their liquidity needs regardless of the tax or social domicile, where most of the capital is Spanish or foreign.

The communities of owners, groups of communities of owners or individuals who need to make renovations or reforms of common elements in homes and buildings.

  • The maximum amount will be 12.5 million euros for each client.
  • When financing is for investment, it is requested under the modality of loans or leasing and when it is for Liquidity under the modality of loan.
  • The financing will be 100% in investment projects.
  • The commissions will be applied by the credit institution at the beginning of the operation and at a cost that does not exceed the maximum APR.
  • The procedure will be directly in a bank or savings bank that works in collaboration with the ICO, who are in charge of doing the study, processing and approval or not of the operation.
  • The guarantees can be mortgage, personal, joint or solidarity guarantees.

Here's our freelance loan guide with all the available options.


Special for investments in the Spanish territory of public or private and autonomous companies that have the endorsement of an SGR or SAECA, regardless of the tax or social domicile and that the capital is mainly Spanish or foreign.

Also for investments outside of Spain , whose entities are domiciled within the national territory or abroad and that have at least 30? Spanish capital.

  • The maximum amount will be 2 million euros .
  • When the destination is for an investment, it will be requested under the loan or leasing modality .
  • The amount of the operation can be up to 100%. It will be the SGR or SAECA who decides this percentage.
  • The interest rate is fixed or variable .
  • The commissions will be applied up to 0.50% on the guaranteed amount and the SGR will charge a mutual social quota that will not exceed 4% on said amount.
  • It can be processed at any financial institution.
  • The guarantees are determined by the entity and the SGR based on the solvency of the applicant and the viability of the project.

ICO Commercial Credit Line

For those companies, SMEs and freelancers that have their registered office in Spain and that issue invoices that are derived from sales of goods and services to a debtor within the national territory or that have a document that accredits them with other companies domiciled in Spain and that allow the purchasing company to commit to acquiring goods from the company making the request for financing.

  • Up to 12.5 million euros each client may acquire in one or more operations.
  • The financial institution and the client have the right to formalize the agreed financing contract . In cases of pre-financing, the document provided must identify the operation to be financed.
  • The financing can be up to 100? L amount of the invoice or the amount of sale of the goods that do not exceed 12.5 million euros.
  • The financial operations are for: advances of invoices that have a due date that does not exceed 180 days or pre-financing when liquidity is needed to cover production and processing costs of a good for export.
  • The interest rate is variable and together with the dates and form of financing, the Credit Institution will establish them.
  • The commissions will be established by the Credit Institution at the beginning of the operation and that does not exceed the maximum APR.
  • It can be processed directly by the bank or savings bank of your choice.
  • Regarding guarantees, it is the Credit Institution who will make the estimate for both invoice advance operations and pre-financing.

ICO International Line

Aimed at companies, freelancers and public or private entities domiciled in Spain or abroad (with 30? Spanish company capital) that need investment and liquidity or for those exporters who need a supplier, buyer and complementary financing credit.

  • The amount will be a maximum of 5 million euros for investment or liquidity and 25 million in cases of exporters.
  • The request will be made under the modality of loan or leasing in investment cases and when it is for liquidity and exporters under the modality of loan, with the possibility of a disbursement in several provisions .
  • You can finance up to 100? L project .
  • The interest rate can be fixed or variable in the currency in which the operation is carried out.
  • Commissions are charged at the beginning of the operation and in the case of exporters , an additional study / opening commission may be charged .
  • The guarantees can be personal, mortgage, joint or joint guarantees, this is determined by the financial institution.

ICO Exporters Line

Those companies with registered office in Spain, self-employed and SMEs that want liquidity through the advance billing in the foreign market or a pre-financing to cover costs of production and preparation of goods or services for export, can request this type of loan, as long as invoices do not exceed 180 days due.

  • Up to 12.5 million euros can be obtained in one or more operations for each client.
  • Both the client and the financial institution can formalize the financing contract and in the case of pre-financing, the document provided must specify the operation to be financed.
  • It is possible to obtain up to 100? L amount from the invoice or from the sale of the goods as long as they do not exceed the maximum amount (12.5 million).
  • The interest rate is variable and together with the dates and the form of settlement will be established by the Credit Institution and the client.

A good financing file must be prepared , the proposal being the key for the loan to be approved or not.

The chosen financial institution always provides a series of guidelines that must be followed. It is important that the document clearly reflects the information of the company or project, the economic data and the purpose of the loan.

Leave a comment

Your email address will not be published. Required fields are marked with *